Comments on: Rich Dad, Poor Dad: Three Lessonshttp://www.thesimpledollar.com/rich-dad-poor-dad-three-lessons/
Financial talk for the rest of usTue, 14 Oct 2014 16:18:02 +0000hourly1http://wordpress.org/?v=4.0By: darlingtonhttp://www.thesimpledollar.com/rich-dad-poor-dad-three-lessons/#comment-40754
Fri, 29 Jun 2007 15:19:53 +0000http://www.thesimpledollar.com/2007/04/03/rich-dad-poor-dad-three-lessons/#comment-40754Well, what i critic about Kiyosakis. One is still true, asserts and liabilities put, makes more sense than most of the accounts books i read. The book is great for all classes!!
]]>By: moomhttp://www.thesimpledollar.com/rich-dad-poor-dad-three-lessons/#comment-16640
Mon, 09 Apr 2007 01:36:24 +0000http://www.thesimpledollar.com/2007/04/03/rich-dad-poor-dad-three-lessons/#comment-16640An owner occupied house is an asset because everyone has to live somewhere and owning a house means you don’t have to pay rent. It’s an implict income (rent avoided) rather than an actual cashflow. But Kiyosakis’ point is good if it stops people buying houses that are too big just because they think it is an investment. You don’t need to buy a house any bigger than the one you would rent if you didn’t own one.
]]>By: Minimum Wagehttp://www.thesimpledollar.com/rich-dad-poor-dad-three-lessons/#comment-15407
Wed, 04 Apr 2007 04:57:47 +0000http://www.thesimpledollar.com/2007/04/03/rich-dad-poor-dad-three-lessons/#comment-15407Who says your principal residence does not generate income and is therefore a liability?

I know a guy who bought a house in a working class neighborhood about three miles from a large university (he was a recent graduate). While students with money and/or ample parental subsidies paid an arm and leg to rent within walking distance of campus (and the bars), there were always bargain hunters eager to cut their housing costs in half by renting a room in this guy’s house. (Although he nearly always had the house filled with friends and rarely needed an outsider to fill up the house.)

With his rental income, he broke even (thereby living in his house for free) right off the bat, and within a few years, it was indeed generating cashflow.

]]>By: coreyhttp://www.thesimpledollar.com/rich-dad-poor-dad-three-lessons/#comment-15364
Wed, 04 Apr 2007 02:00:56 +0000http://www.thesimpledollar.com/2007/04/03/rich-dad-poor-dad-three-lessons/#comment-15364Thanks for the great basic coverage here. I’ve had a hold on this book at the library for weeks now. Looking forward to the remaining reports, and the entire 52 financial books in 52 weeks series, it’s a great concept.
]]>By: Robhttp://www.thesimpledollar.com/rich-dad-poor-dad-three-lessons/#comment-15325
Tue, 03 Apr 2007 22:57:58 +0000http://www.thesimpledollar.com/2007/04/03/rich-dad-poor-dad-three-lessons/#comment-15325I actually like kiyosaki’s definition of an asset… At least – “an asset is something that grows my net worth” – therefore buy lots of assets.
It’s simple, but effective. It’s similar in some ways to the latte factor.. You can spend that $5 on a coffee – or you could spend it on an Asset – that will pay you back later.
]]>By: Debbiehttp://www.thesimpledollar.com/rich-dad-poor-dad-three-lessons/#comment-15307
Tue, 03 Apr 2007 21:49:59 +0000http://www.thesimpledollar.com/2007/04/03/rich-dad-poor-dad-three-lessons/#comment-15307The lesson I took from chapter 2 is that there are two kinds of assets: the kind where you get money by selling it and the kind where you get money by keeping it. That’s pretty interesting.

The kind where you make money by selling is riskier–it only works if you buy low and sell high. This would include real estate, stocks, and collectibles.

Making money buy owning it works so long as you’re beating inflation and includes stocks that pay dividends, real estate that you’re renting out, and royalties. It also includes other things like tools that let you do things for yourself instead of hiring others, cars that let you get to high-paying but far away jobs, suits that give you the right image to move up in your job, stuff like that. Maybe even things that make you happy (which is fun but also is connected with being more productive, healthier, etc.)

In spite of what this guy says, not everything we own is a liability. It makes sense to compare benefits and costs not only when buying things but also when owning things. If it turns out a car costs a lot to maintain, or the cartridges to our printer are expensive, we may want to switch to another model that still does what we need for a lower maintenance cost.

That’s reading a lot into this chapter, but I wouldn’t have thought to wonder whether I’m making money by keeping vs. selling something until I read this chapter.

]]>By: plonkeehttp://www.thesimpledollar.com/rich-dad-poor-dad-three-lessons/#comment-15213
Tue, 03 Apr 2007 15:38:54 +0000http://www.thesimpledollar.com/2007/04/03/rich-dad-poor-dad-three-lessons/#comment-15213Just to add my 2p.
I have seen criticisms of the second chapter, with people arguing that Kiyosaki wrongly defines an asset. I think thats missing the point that however you define an asset, the way to become rich is to accumulate things that give you an income. BTW this is not the same as having a high net worth.
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